IMPROVING OUR COMMUNITIES

Transcription

IMPROVING OUR COMMUNITIES
AND OUR WORLD
2010-2011 ENVIRONMENTAL AND SOCIAL REPORT
www.jetblue.com/green
LETTER FROM THE CEO
More than a decade ago, we set out to reinvent the
traditional airline model and founded JetBlue on
the principle of bringing humanity back to air travel.
Today, we still believe that it is our responsibility to
positively impact our customers and our communities.
We hold true to these values as we strive to make a
difference in our industry, to the environment, and in
the communities where we live and work.
Dave Barger
Chief Executive Officer
In honor of our first decade of service, we committed to
building 10 new playgrounds for KaBOOM!, a nonprofit
organization aimed at creating great places to play
for every child in America. Our support of KaBOOM! is
just one way we give back — we also partner with the
American Cancer Society, Do Something, First Book,
and many other national and local organizations that
support youth, education, the environment and our
communities. We sponsor more than 700 nonprofit
organizations each year and also encourage our
crewmembers to get involved through volunteering.
In 2011, we launched a new program, Community
Connection, which allows crewmembers to earn
JetBlue tickets for the nonprofit organizations of their
choice. Through this effort, we donated more than
$270,000 worth of travel in 2011 to the causes that
matter most to our crewmembers.
the industry, air travel still affects the environment.
We remain focused on reducing and offsetting our
greenhouse gas emissions. Since 2008, JetBlue has
purchased carbon offsets for all our company business
travel, and we invite our customers to do the same
through our partnership with Carbonfund.org. In 2010,
we announced plans to move our corporate support
center into a renovated Leadership in Energy and
Environmental Design (LEED) Silver certified building in
Long Island City, N.Y., in 2012. We believe the office will
provide a healthier workspace for our crewmembers
and reduced environmental impact for the community.
We invite you to read this JetBlue 2010-2011
Environmental and Social Report to learn more about
our initiatives to improve the environment and
our communities. We have prepared this report in
accordance with the Global Reporting Initiative (GRI),
an internationally recognized framework for
sustainability reporting. We aim to increase
transparency in our economic, environmental and
social performance as we move into our second
decade of a responsible and profitable JetBlue.
Strong communities need a healthy environment, so
we strive to reduce our environmental impact. While
JetBlue’s fleet is among the most fuel-efficient in
1
JETBLUE ENVIRONMENTAL AND SOCIAL REPORT
TABLE OF CONTENTS
LETTER FROM THE CEO...................................................................................................1
INTRODUCTION................................................................................................................3
OUR STORY......................................................................................................................5
A DECADE OF JETBLUE SKIES.......................................................................................19
SAFETY AND SECURITY.................................................................................................21
REDUCING OUR IMPACT.................................................................................................24
VOLUNTEERING OUR SERVICES.....................................................................................34
SPOTLIGHT: BOSTON.....................................................................................................41
AWARDS........................................................................................................................45
“More than a decade ago,
we set out to reinvent the
traditional airline model
and founded JetBlue on
the principle of bringing
humanity back to air
travel. Today, we still
believe that it is our
responsibility to positively
impact our customers and
our communities.
We hold true to these
values as we strive to
make a difference in
our industry, to the
environment, and in the
communities where we
live and work.”
— Dave Barger
ABOUT OUR REPORTING................................................................................................49
GLOBAL REPORTING INITIATIVE INDEX.........................................................................51
2010-2011
2
INTRODUCTION
OUR SUPERIOR PRODUCT, OUR AWARD-WINNING CUSTOMER SERVICE, AND OUR
ENVIRONMENTAL AND SOCIAL RESPONSIBILITY INITIATIVES ALL CONTRIBUTE TO OUR
GOAL TO BECOME THE AMERICAS’ FAVORITE AIRLINE.
As JetBlue has grown, so has our commitment to the
people and the communities that have contributed to our
success. We are working to reduce our environmental
impact and have a positive effect on the communities we
serve. We are also working to increase transparency in
our business.
In this JetBlue 2010-2011 Environmental and Social
Report, we provide insight into our economic,
environmental and social performance over 2010
and 2011. In Our Story, we disclose our operations,
governance, crewmembers, facilities and aircraft as
they pertain to our economic performance. We operate
one of the quietest and most fuel-efficient fleets of any
major U.S. airline, and we discuss these and our other
environmental initiatives in Reducing Our Impact. As we
describe in Volunteering Our Services, we also focus on
creating programs and opportunities to give back to our
communities within the areas of youth and education,
community, and the environment.
Average Number of Daily Flights
YEAR
As JetBlue has grown,
so has our commitment
to the people and the
communities that
have contributed to
our success. We are
working to reduce our
environmental impact and
have a positive effect on
the communities we serve.
We are also working to
increase transparency in
our business.
In February 2000, JetBlue commenced service with an inaugural flight between New York’s John F. Kennedy
International Airport (JFK) and Fort Lauderdale-Hollywood International Airport in Florida. By the end of 2011, we
operated an average of 700 daily flights serving 70 destinations in the U.S., Puerto Rico, Mexico, the Caribbean and
Latin America.
2000 28
2001 72
2002 121
2003
183
2004
248
2005
307
2006
436
2007
539
2008
563
2009
590
2010
618
2011
667
FLIGHTS PER DAY
3
In this JetBlue 20102011 Environmental
and Social Report, we
provide insight into our
economic, environmental
and social performance
over 2010 and 2011. We
believe our environmental
and social responsibility
initiatives combined with
our superior product and
customer service will help
us achieve our goal of
becoming the Americas’
Favorite Airline.
As we explain in About Our Reporting, this report is prepared in compliance with the internationally
recognized GRI framework for sustainability reporting. At JetBlue, we recognize the importance of
sustainability to the long-term success of our business. We believe our environmental and social
responsibility initiatives combined with our superior product and customer service will help us achieve
our goal of becoming the Americas’ Favorite Airline.
2010-2011
4
OUR STORY
WE BELIEVE THAT A KEY ELEMENT OF OUR CURRENT AND LONG-TERM SUCCESS IS
THAT WE OFFER CUSTOMERS A BETTER ALTERNATIVE FOR AIR TRAVEL.
At JetBlue, we are a relatively young company with a
growing fleet and expanding route network. We are
focused on profitable growth, particularly with business
customers in Boston and customers visiting friends
and family in the Caribbean and Latin America. We are
building partnerships with other airlines to expand our
network, particularly out of JFK. In this section of our
report, we summarize our 2010 and 2011 economic
performance as well as describe our crewmembers
and employment policies, facilities and fleet, network,
and governance.
costs, maximizing unit revenues and managing
capital expenditures, which we believe drives
sustainable growth.
ECONOMICS
In 2011, we reported a net income of $86 million and an
operating margin of 7.1%. The year-over-year decline
in our financial performance was primarily a result of
higher fuel prices.
At JetBlue, our financial strategy includes a commitment
to sustainable growth. We are committed to controlling
In 2010, we reported a net income of $97 million and
an operating margin of 8.8% compared to net income
of $61 million and an operating margin of 8.6% in
2009. The year-over-year improvement in our financial
performance was primarily a result of an 8% increase in
our average fares and 7% increase in capacity, offset by a
10% increase in our realized fuel price.
Operating Revenues by Geographic Regions
as of December 31, 2011 (in millions)
5
2011
2010
Domestic
$3,351
$2,900
Caribbean
$1,153
$879
Total
$4,504
$3,779
Passenger revenue accounted for 90% of our total
operating revenues for the year ending December 31,
2010, and 91% of our total operating revenues for the
year ending December 31, 2011. Revenues generated
from international routes, including Puerto Rico,
accounted for 24% of our total passenger revenues in
2010 and 26% of our total passenger revenues in 2011.
Revenue is recognized either when transportation is
provided or after the ticket or customer credit expires.
We measure capacity in terms of available seat miles,
which represents the number of seats available for
customers multiplied by the number of miles the seats
are flown. Yield, or the average amount one customer
pays to fly one mile, is calculated by dividing passenger
revenue by revenue passenger miles. We strive to
increase passenger revenue primarily by increasing
our yield per flight, which produces higher revenue per
available seat mile (RASM). Our objective is to optimize
our fare mix in certain markets and to utilize our network
to maximize connecting opportunities while continuing to
provide our customers with competitive fares.
Other sources of revenue consist primarily of fees
charged to customers in accordance with our published
policies relating to reservation changes and baggage
limitations, the marketing component of TrueBlue
point sales, concession revenues, revenues associated
with transporting mail and cargo, rental income, and
revenues earned by LiveTV® for the sale of and ongoing
services provided for inflight entertainment systems on
other airlines.
2010-2011
The airline industry is one of the most heavily
taxed in the U.S., with taxes and fees accounting
for approximately 16% of the total fare charged to a
customer in 2010 and 15% of the total fare charged in
2011. Airlines are obligated to fund all of these taxes and
fees regardless of their ability to pass these charges on
to the customer.
Even More Space
In June 2011, JetBlue launched Even More Space,
a seating option that provides extra legroom, early
boarding and early access to overhead bin space. Even
More Space is available for rows one through five plus
emergency exit rows 10 and 11 on the Airbus 320 (A320)
aircraft and in row one and the emergency exit row 12
of the EMBRAER 190 (E190) aircraft. Customers may
select Even More Space for an additional charge, which
varies by route. Customer response to Even More Space
exceeded our expectations, resulting in more than
$120 million of incremental revenue in 2011.
Provision for Income Taxes for Years Ending
December 31 (in millions)
Income Tax Expense
2011
2010
Federal deferred
$51
$55
State deferred
$7
$7
Subtotal deferred
$58
$62
Current
$1
$2
Total
$59
$64
Operating revenues are
allocated to geographic
regions, as defined by
the U.S. Department of
Transportation (DOT),
based upon the origination
and destination of each
flight segment. As of
December 31, 2011, we
serve 20 locations in
the Caribbean and Latin
American region, or
Latin America as defined
by the DOT. However,
JetBlue also includes
Puerto Rico when
reviewing the Caribbean
region. Therefore, we
have included our three
destinations in Puerto Rico
in our Caribbean allocation
of revenues.
6
SUBSIDIARIES
As of December 31, 2011, JetBlue had five subsidiaries:
These are LiveTV®, LLC; LiveTV® International Inc.;
BlueBermuda Insurance, LTD; LiveTV® Airfone, LLC;
and JetBlue Airways Corporation Sucursal Colombia.
Our LiveTV® service provides inflight entertainment,
voice communication and data connectivity services
for commercial and general aviation aircraft. At the
end of 2011, LiveTV® had agreements with six other
domestic and international commercial airlines for the
sale and installation of hardware, programming and
maintenance of its live, in-seat satellite television and
XM satellite radio service. LiveTV® also has general
7
aviation customers to which it supplies voice and data
communication services. In 2011, JetBlue partnered
with ViaSat Inc., a leader in satellite technologies,
to develop a state-of-the-art, in-flight broadband
connectivity technology. LiveTV® will help us introduce
the technology on our aircraft beginning in 2013. LiveTV®
is also working with ViaSat Inc. to support in-flight
connectivity for other airlines in the future.
BlueBermuda Insurance, LTD, is a wholly owned
subsidiary that assists us in maintaining a low-cost
structure and is a captive insurance entity. JetBlue
Airways Corporation Sucursal Colombia is a subsidiary
we were required to form under Colombian law in order
to operate in the country.
Total Crewmembers
+12
1,174
2000
2,361
2001
New Hires1
4,011
2002
5,553
2003
7,399
2004
YEAR
Total Crewmembers
9,248
2005
3,599
2006
10,624
11,632
3,584
2007
2,446
2008
2009
2,200
2010
2,232
11,852
12,532
12,948
2,757
2011
0
14,022
3,000
3000
6,000
6000
9,000
9000
12,000
12000
15,000
15000
CREWMEMBERS
1
New hire data unavailable for 2000 through 2005.
EMPLOYMENT
Unlike most airlines, we have a non-union workforce.
We believe this provides us with more flexibility and
contributes to our ability to maintain one of the lowest
cost structures in the industry. Our approach allows us to
be more productive, although we are subject to ongoing
attempts at unionization.
We believe a direct relationship with JetBlue leadership,
not third-party representation, is in the best interests
of our crewmembers, customers and shareholders.
We enter into individual employment agreements
2010-2011
with each of our Federal Aviation Administration
(FAA)-licensed crewmembers, which includes pilots,
dispatchers, technicians and inspectors. Each
employment agreement is for a term of five years and
renews for an additional five-year term unless the
employee is terminated for cause or the employee
elects not to renew. Pursuant to these agreements,
these crewmembers can only be terminated for cause.
In the event of a downturn in our business that would
require a reduction in work hours, we are obligated to
pay these crewmembers a guaranteed level of income
Our LiveTV® service
provides inflight
entertainment, voice
communication and data
connectivity services for
commercial and general
aviation aircraft. At the
end of 2011, LiveTV® had
agreements with six other
domestic and international
commercial airlines for
the sale and installation of
hardware, programming
and maintenance of its
live, in-seat satellite
television and XM satellite
radio service.
8
Between 2010 and 2011, we grew
our workforce. As of December
31, 2010, JetBlue employed 9,626
full-time and 3,322 part-time
crewmembers, for a total 12,948
crewmembers. By December 31,
2011, JetBlue employed 10,243
full-time and 3,779 part-time
crewmembers, for a total of
14,022 crewmembers.
Full-Time Equivalent Crewmembers
in All Locations as of December 31, 2011
2010
1,897
Pilots
FULL-TIME EQUIVALENT CREWMEMBERS
We enter into individual
employment agreements
with each of our FAAlicensed crewmembers,
which includes pilots,
dispatchers, technicians
and inspectors. Each
employment agreement is
for a term of five years.
and to continue their benefits.
In addition, we provide what we
believe to be industry-leading
job protection language in the
agreements in the event of a
merger or acquisition, including
the establishment of a legal
defense fund to use for seniority
integration negotiations.
2,168
2011
2,039
Flight attendants
2,326
3,393
Airport operations
personnel
Technicians
(mechanics)
Reservation agents
3,560
491
509
1,066
805
2,586
Management and
other personnel
2,726
COUNT
9
Provisional Part Time
Regular Full Time
Regular Part Time
72.35%
Crewmembers in International Locations
as of December 31, 2011
7%
Puerto Rico
7%
Dominican Republic
Our crewmember turnover rate averaged 12% in
2010 and 11% in 2011. Turnover rates are lowest
among crewmembers aged 30 to 59 and highest
among the youngest of our work force — those
younger than 20.
Bahamas
Other
21%
65%
Crewmember Turnover1
100%
90%
2008 Turnover Rate
80%
TURNOVER RATE
The majority of our crewmembers are based in the
United States; however, we have significant numbers
of crewmembers at our stations in the Bahamas,
Dominican Republic and Puerto Rico. The remaining
Caribbean locations use local subcontractors for
most ground operations and are staffed with fewer
than five JetBlue crewmembers at each location.
Wages and Benefits
In 2010, salaries, wages and benefits increased
15%, or $115 million, due to an increase in average
full-time equivalent crewmembers and increases
in pay rates. We hired additional crewmembers in
preparation for our new customer service system
implementation that began in January 2010. We also
experienced an increase in overtime pay as a result
of severe winter storms in the Northeast both in
early and late 2010.
As of December 31, 2011,
we employed 10,243
full-time and 3,779 parttime crewmembers.
The majority of our
crewmembers are based
in the United States;
however, we have
significant numbers of
crewmembers at our
stations in the Bahamas,
Dominican Republic and
Puerto Rico.
2009 Turnover Rate
70%
2010 Turnover Rate
2011 Turnover Rate
60%
50%
1
40%
30%
20%
10%
0
18-19
20-29
30-39
AGE
2010-2011
40-49
60+
The number of crewmembers
under age 20 is small (fewer
than 20 individuals, or around
0.1% of total crewmembers
in both 2010 and 2011). Many
of these crewmembers had
internships or temporary
positions that were expected
to terminate after a defined
period of time. For these
reasons, the turnover rates for
crewmembers under age 20
appears high.
10
JetBlue offers a comprehensive and competitive benefits
package to our part-time and full-time crewmembers.
Additionally, both part and full-time crewmembers
are eligible to participate in our crewmember stock
purchase and profit-sharing programs. Our retirement
plan is composed of a defined contribution plan — 401(k)
with both employee contribution and employer match.
We believe this provides our crewmembers maximum
flexibility in managing their retirement benefits and
eliminates the need for reliance on any managed funds
that would be required to back traditional pensions.
Highlights of our comprehensive benefits
package include:
• Four health plans to provide our crewmembers options
and the ability to select plans that match their budgets
• Up to $250 in flexible spending account funds
offered to every crewmember for evidence of healthy
behaviors to offset their out-of-pocket medical
expenses, regardless of whether or not they are on our
health plan
11
In 2011, salaries, wages and benefits increased an
additional 6%, or $56 million. This increase resulted
mainly from a 5% increase in the average number of
full-time equivalent crewmembers needed to support
our profitable growth plans, increases in wages and
related benefits associated with pay increases, and the
increasing seniority levels of our crewmembers.
• Dollar-for-dollar 401(k) match on the first 5% of
crewmember contributions subject to Internal
Revenue Service limits
Caring for our crewmembers is part of who we are.
Unlike most airlines, we have a non-union workforce
and a policy of not furloughing crewmembers during
economic downturns. The implementation of this policy
is partially responsible for increases in average full-time
equivalent crewmembers salaries, wages and benefits
in 2010.
• Profit-sharing and 401(k) contributions expense total
$61 million, $55 million, $48 million, $43 million
and $39 million in 2011, 2010, 2009, 2008 and
2007 respectively
• Profit-sharing contributions equal to 5% of eligible
crewmember salaries are deposited directly into a
retirement account each year whether or not the
airline is profitable
• 5% discount offered through our crewmember stock
purchase plan
• All crewmembers have a 401(k) account, and
72% of crewmembers participate in voluntary salary
deferrals
• 100% of eligible crewmembers participate in our
profit-sharing program
JetBlue Crewmember Crisis Fund
In February 2002, the nonprofit JetBlue Crewmember
Crisis Fund (JCCF) was formed to assist crewmembers
and their immediate families in times of crisis when they
have no other means by which to support themselves.
Grants are awarded to assist with rent or mortgage,
utilities, food and clothing when crewmembers and their
families are struggling due to fires, hurricanes, other
disasters, injuries or extended illnesses. The entire
process is confidential — only the fund administrator
learns the identity of the crewmember in need.
The JCCF consists of 13 board members, three executive
board members and eight board members representing
each of the major JetBlue departments. Two
crewmembers also serve as nonvoting administrative
support to the JCCF. The JCCF board, whose members
are volunteers, is committed to confidentially evaluating
each of the requests for grants and ensuring that the
grants meet the mission of the JCCF. The board meets
monthly to review applications and discuss the business
of the fund. In cases of extreme crisis, there may be
other application reviews, as stated in JCCF policies.
grants. More than 55% of crewmembers donate to the
JCCF, and crewmember participation in JCCF donations
continues to grow. JCCF also receives donations from
outside organizations and fundraisers. Since the
incorporation of the JCCF through December 31, 2011,
the JCCF received more than $6 million in donations. The
JCCF has distributed approximately 865 grants averaging
$3,379 each for a total distribution of nearly
$3 million as of December 31, 2011.
“I am unable to find
the words to express
how much this grant
has meant to me. It is a
blessing to be able to be
part of a business whose
employees have gone out
of their way to create a
program like this one.
I could not begin to
express my gratitude.
I will continue to donate
and am proud to be able
to help others who are in
situations like mine.”
– Anonymous
crewmember recipient
of JCCF grant
Funds for JCCF grants come from crewmembers via
a tax-deductible payroll deduction. Nearly 100% of
crewmembers’ donations to JCCF go directly to the
2010-2011
12
• 80,000-square-foot flight and crewmember training
center at Orlando International Airport
in Florida
• 70,000-square-foot LiveTV® hangar at Orlando
International Airport for the installation and
maintenance of in-flight satellite television systems
and aircraft maintenance
In November 2005, we executed a lease agreement with
the Port Authority of New York and New Jersey for the
construction and operation of Terminal 5, which became
our principal base of operations at JFK in October 2008.
In December 2010, we executed a five-year supplement
to this lease agreement for the Terminal 6 property
adjacent to our operations at Terminal 5.
FACILITIES AND FLEET
As of December 31, 2011, our primary corporate offices
were located in Forest Hills, N.Y.; our finance department
was based in Darien, Conn.; and our reservations and
customer support center is in Salt Lake City. We occupy
all of our facilities at each of the airports we serve under
leases or other occupancy agreements.
Our agreements for aircraft service facilities include:
•7
0,000-square-foot aircraft maintenance hangar
at JFK
•3
2,000-square-foot office and warehouse facility at JFK
to accommodate our technical support operations and
customer provisioning personnel
•1
9,000-square-foot building at JFK to store spare
aircraft parts and perform ground equipment
maintenance
13
Our operations at Boston’s Logan International Airport
(Logan) are based at Terminal C. As of December
31, 2011, we operated 17 gates and 42 ticket counter
positions, including 10 international ticket counters.
In 2011, Massport completed work that connected two
concourses within Terminal C, centralizing the security
checkpoint and providing our customers the convenience
of 14 contiguous gates.
Other JetBlue focus cities include Long Beach, Calif.;
Orlando, Fla.; Fort Lauderdale, Fla.; and San Juan,
Puerto Rico. Our West Coast operations are based at
Long Beach Municipal Airport, which serves the Los
Angeles area. In 2010, the Long Beach Airport began
work on redevelopment efforts, including a new parking
structure and new terminal, which is expected to open in
2013. In Florida, our primary operations are at Orlando
International Airport and Fort Lauderdale-Hollywood
International Airport. Our operations in San Juan,
Puerto Rico, are based at Luis Muñoz Marin
International Airport.
Because we lease our facilities, our tangible assets primarily consist of our fleet of aircraft, which is one of the
youngest and most fuel-efficient fleets of any major U.S. airline. As of December 31, 2011, it consisted of 120 A320
aircraft each powered by two V2527-A5 International Aero Engines and 49 E190 aircraft each powered by two General
Electric CF-34-10 engines. All of our aircraft carry U.S. registration numbers.
CAPACITY DISTRIBUTION
As of December 31, 2011, we operated 700 daily flights serving 70 destinations in 22 states, Puerto Rico, Mexico and
12 countries in the Caribbean and Latin America. Our disciplined growth includes our optimization of our route
network by focusing on key regions. We increased focus on serving business travelers in Boston and travelers visiting
friends and family in the Caribbean and Latin America. We also increased our partnerships with other airlines,
particularly at JFK. We added three new destinations in 2010, and seven new destinations in 2011. In 2010, we added
Washington D.C.’s Reagan National Airport, where we joined with the Metropolitan Washington Airports Authority
to incorporate rooftop solar panels and other green
building practices into the terminal. We strengthened
our position as the largest carrier in Boston by adding
six new destinations from Boston in 2010 and five new
destinations from Boston in 2011.
JetBlue Network:
Cities Added and Removed1
+12
2000
2001
+6
2002
+2
2003
+2
-1 ATL
+9
ATL is Hartsfield-Jackson Atlanta
International Airport in Atlanta; SDQ is
Las Americas International Airport near
Santo Domingo, Dominican Republic;
BNA is Nashville International Airport in
Nashville, Tenn.; CMH is Port Columbus
International Airport in Columbus, Ohio;
TUS is Tucson International Airport
in Tucson, Ariz.; ONT is L.A./Ontario
International Airport in Ontario, Calif.
2
2010-2011
YEAR
2004
1
+4
2005
-1 SDQ2
+16
2006
+5
2007
2008
-4 BNA, CMH, TUS, ONT
+2
+8
2009
2010
2011
Our fleet is one of the
youngest and most fuelefficient fleets of any
major U.S. airline. As
of December 31, 2011,
it consisted of 120 A320
aircraft and 49 E190
aircraft. All of our
aircraft carry U.S.
registration numbers.
+3
+7
70 TOTAL DESTINATIONS
SDQ was added back to the
network in 2007.
14
In the Caribbean and Latin America region, we continued
to increase our presence and reached milestones
in 2011 by becoming the largest airline serving both
Puerto Rico and the Dominican Republic. In particular,
our expansion in San Juan, Puerto Rico, included the
introduction of intra-island service to many of our
Caribbean destinations. As of December 31, 2011, we had
approximately 25% of our capacity in the Caribbean and
Latin America.
We are focused on
optimizing our schedule and
balancing our network to
serve a diversified customer
mix of leisure travelers,
business travelers and
traffic from visiting friends
and relatives. In 2011, we
won auctions for eight
take-off and landing slots
at each of New York City’s
LaGuardia and Washington,
D.C.’s Ronald Reagan
National airports, and we
plan to begin our expanded
service at each of these
airports in 2012.
15
Capacity Distribution
2011
2010
East Coast — Western U.S.
32.4%
34.5%
Northeast — Florida
32.2%
31.4%
Medium-haul
3.2%
3.3%
Short-haul
7.5%
7.6%
Caribbean, including Puerto Rico 24.7% 23.2%
We are focused on optimizing our schedule and balancing
Total
100%
100%
our network to serve a diversified customer mix of leisure
travelers, business travelers and traffic from visiting
friends and relatives. In 2011, we won auctions for eight
take-off and landing slots at each of New York City’s LaGuardia and Washington, D.C.’s Ronald Reagan National
airports, and we plan to begin our expanded service at each of these airports in 2012.
When we enter a new market, our fares are designed to stimulate demand, particularly from fare-conscious leisure
and business travelers. In addition to our regular fare structure, we frequently offer sale fares with shorter advance
purchase requirements in most of the markets we serve and match the sale fares offered by other airlines.
GOVERNANCE
The JetBlue Code of Business Conduct governs the
actions of all JetBlue crewmembers, which includes
members of the JetBlue Board of Directors. We hold
ourselves to the JetBlue values of safety, caring,
integrity, fun and passion, which we believe are
integral to the JetBlue Experience for customers and
crewmembers alike.
One of the ways in which we try to live our values
is through our governance practices, enhancing
transparency for our stakeholders. The business of
JetBlue is managed under the direction of our Board
of Directors. As of December 31, 2011, our 11-member
JetBlue Board of Directors was comprised of one
employee director and 10 independent directors.
Three of our directors, approximately 27%, are female.
As of the end of 2011, there were four standing board
committees: Audit, Compensation, Airline Safety, and
Corporate Governance and Nominating. We established
the Airline Safety Committee on September 16, 2010.
The board performs a self-assessment annually. We
believe our current practices and policies address social
2010-2011
and environmental concerns that are material to our
business and important to our stakeholders and do not
require the addition of a social/environmental committee
to our board.
Stockholders may communicate with our Board of
Directors by sending a letter to the JetBlue Board of
Directors, c/o Corporate Secretary, JetBlue Airways
Corporation, 27-01 Queens Plaza North, Long Island City,
NY 11101. Stockholders may communicate to the board
on an anonymous or confidential basis.
We hold ourselves to the
JetBlue values of safety,
caring, integrity, fun and
passion, which we believe
are integral to the JetBlue
Experience for customers
and crewmembers alike.
One of the ways in which
we try to live our values
is through our governance
practices, enhancing
transparency for
our stakeholders.
Our governance
guidelines, codes and
committee charters are
available on the investor
relations portion of
www.jetblue.com.
The chair of the Audit Committee is advised of
communications that allege management misconduct
or raise legal, ethical or compliance concerns about
company policies and practices. We adopted and
published our Code of Ethics, which applies to our chief
executive officer, chief financial officer, chief accounting
officer and other senior financial officers.
Our governance guidelines, codes and committee
charters are available on the investor relations portion
of www.jetblue.com.
16
•R
emoval of supermajority provisions from our
charter documents: We do not maintain supermajority
voting provisions our charter documents.
•E
xecutive compensation practices: We strive for
transparent and realistic compensation packages.
Refer to our 2010 and 2011 Definitive Proxy Statement
(DEF-14A) at http://investor.jetblue.com for details.
•R
etirement and pension practices: Our executives
do not benefit from significant retirement or pension
benefits. All of our crewmembers enjoy a retirement
plan with a 401(k) component.
About Our Board of Directors
•D
eclassified board: Our board members are
elected annually.
• I ndependent director as board chair: The
independence of our board’s chair empowers both
the Board of Directors and our executive officers
and provides a healthy dynamic that enables each to
function to the best of his or her ability, individually and
as a unit.
•D
irector stock ownership: Our Board of Directors has
adopted a policy whereby directors hold their grants
of director stock units throughout their tenure as a
director. Vested equity is issued six months following
the director’s departure from the Board of Directors.
•D
irector resignation policy: Any director who receives
more withheld votes than for votes in an uncontested
election shall submit a resignation for the board’s
consideration.
17
Compensation for Senior Leadership
Our annual incentive bonuses aim to reward executive
officers and other leadership throughout the
organization down to the manager level for attaining
annual corporate performance targets. The bonuses are
based on a number of factors which may vary from year
to year, including net promoter score (NPS), ex-fuel cost
per available seat mile (CASM) and operating margin.
NPS is a brand loyalty analysis. Ex-fuel CASM is our
operating expense per available seat mile, excluding
fuel. Operating margin is a financial ratio calculated by
dividing operating revenues into operating income.
In 2011, we adopted a hurdle of $1 of pre-tax income,
as part of our ongoing efforts to ensure that our
performance targets drive company performance.
Pre-tax income is also the threshold for our front-line
payment of profit sharing, which is payable to all nonequity eligible employees. Our manager level and above
employees, including our named executive officers,
will not benefit from bonus payments if our front-line
personnel do not receive profit sharing due to our
financial results.
OWNERSHIP DISTRIBUTION
Per our Proxy Statement dated March 28, 2012, based
primarily on forms publicly filed with the U.S. Securities
and Exchange Commission by the holders listed below,
beneficial owners of more than 5% of our outstanding
common stock are BlackRock Inc.; Deutsche Lufthansa;
2010-2011
Donald Smith & Co. Inc.; FMR, LLC; Goldman Sachs
Asset Management; PRIMECAP Management Co.;
Wellington Management Co., LLP; and Whitebox
Advisors, LLC. Our executive officers and directors
own less than 1% of our total outstanding shares of
common stock.
Stockholders may
communicate with
our Board of Directors
by sending a letter to
the JetBlue Board of
Directors, c/o Corporate
Secretary, JetBlue
Airways Corporation,
27-01 Queens Plaza
North, Long Island City,
NY 11101. Stockholders
may communicate with
the Board of Directors
on an anonymous or
confidential basis.
18
A DECADE OF JETBLUE SKIES
WE CELEBRATED THE 10TH ANNIVERSARY OF OUR FIRST FLIGHT WITH NEW
COMMUNITY INVESTMENTS, SPECIAL EVENTS AND $10 FARES. TO OUR
CREWMEMBERS, CUSTOMERS AND COMMUNITIES — WE THANK YOU FOR
JETBLUE’S FIRST DECADE OF SUCCESS.
A decade ago, JetBlue
set out to reinvent the
traditional airline model
and become the carrier of
choice for our customers
and a great place to work
for our crewmembers. In
the 10th anniversary of our
first flight, we attribute our
success in part to JetBlue’s
strategy as the un-airline
of the industry, bringing
humanity back to air travel
and putting our customers
first above all else.
A decade ago, JetBlue set out to
reinvent the traditional airline model
and become the carrier of choice for our
customers and a great place to work
for our crewmembers. On February 11,
2000, our 300 founding crewmembers
launched JetBlue service with an
inaugural flight between JFK and Fort
Lauderdale-Hollywood International
Airport in Florida. At the end of 2010,
our 13,000 dedicated crewmembers
operated an average of 650 daily flights
serving 63 destinations in the U.S.,
Puerto Rico, the Caribbean and Latin
America. In the 10th anniversary of our
first flight, we attribute our success
in part to JetBlue’s strategy as the
un-airline of the industry, bringing
humanity back to air travel and putting
our customers first above all else.
We celebrated our 10th anniversary with our crewmembers, customers and communities through special events,
$10 fares and new community investments. On February 11, 2010, all our crewmembers kicked off the year-long
celebration by enjoying food and festivities at each of our JetBlue locations. Throughout 2010, Chief Executive Officer
Dave Barger visited every JetBlue location, meeting thousands of crewmembers, customers and investors.
We recognized our 10th anniversary by giving back to the communities where we live and work. We committed to
building 10 new playgrounds for KaBOOM!, a national nonprofit organization aimed at creating great places to play
for every child in America. As a supporting partner of KaBOOM!, we are passionate advocates for increasing play
opportunities for children in the communities surrounding our JetBlue locations. Through our partnership with
19
KaBOOM!, our crewmembers and communities work as
a team to build new playgrounds and spaces for children
to be children. To kick off our 10 playground promise, we
developed a new play area in Roxbury, Mass., in 2010,
and in Revere, Mass., and Kissimmee, Fla., in 2011.
Our customers are the key to our success, so our
crewmembers set out to deliver an unforgettable
celebration for our customers. On March 9-10, 2010, we
offered special $10 thank you fares between JFK and
JetBlue’s first 10 destinations. In addition to $10 fares,
we announced on March 10, 2010, a special giveaway
for our customers in New York City. Through our Twitter
account, @JetBlue, we offered free roundtrip JetBlue
tickets to customers who visited three locations in New
York City and presented a birthday greeting to JetBlue.
On June 10, 2010, we offered customers in Boston an
opportunity to win one of 10 free roundtrip vacation
getaways by competing in fun challenges such as
juggling airplane bags of cashews or rhyming the
word “blue.” Through the New York City and Boston
contests, we awarded more than 900 free roundtrip
tickets or vacation getaways on JetBlue.
2010-2011
As we celebrated our
anniversary with our
crewmembers, customers
and communities, we looked
forward to success in our
second decade. Despite
turmoil in the airline industry
and volatility in the cost of
energy, we believe JetBlue’s
model uniquely positioned
us to succeed over the last
decade. Staying true to our
JetBlue strategy, we aim to
be the Americas’ Favorite
Airline by delivering superior
customer service, the award-winning JetBlue Experience
and the best domestic coach product in the skies in the
decade ahead.
YOU ABOVE ALL
“We created a
customer service
company that
happens to fly
airplanes. Since 2000,
we have succeeded in
building a new airline
category that focuses
on friendly service,
free snacks and
drinks, comfortable
leather seating with
ample legroom, and
complimentary satellite
radio and live TV on
personal seatback
screens. We look forward
to our next 10 years
and thank all of our
loyal customers and
crewmembers for an
incredible decade. We
will continue to refine and
refresh our product by
listening to the valuable
feedback from them
while delivering more
destinations, more choices
and more value to our
customers.”
— Dave Barger
Chief Executive
Officer
20
SAFETY AND SECURITY
“NOTHING IS MORE IMPORTANT THAN ENSURING OUR CUSTOMERS, CREWMEMBERS
AND BUSINESS PARTNERS REMAIN SAFE THROUGHOUT THEIR ENTIRE JETBLUE
EXPERIENCE. WE HAVE ENHANCED OUR SAFETY AND SECURITY INITIATIVES, AS WE
CONTINUALLY STRIVE FOR EXCELLENCE IN THESE VITAL AREAS.” – CRAIG HOSKINS,
VICE PRESIDENT OF SAFETY AND CHIEF SAFETY OFFICER
JetBlue. ISMS promotes individual
and group values, proper attitudes,
core competencies and responsible
patterns of behavior, which reinforce
JetBlue’s corporate commitment to
safety. The foundation of our approach
is communication, mutual trust,
shared value of safety and confidence
in the effectiveness of preventative
measures. We provide extensive
safety training for our pilots, in-flight
crewmembers, technicians, airport
agents, dispatchers and reservation
agents. As part of our ISMS, we hire
caring and passionate people, train
them to applicable standards, and
provide them with appropriate tools
and equipment.
Safety is our number
one value. Nothing is
more important than
ensuring our customers,
crewmembers and
business partners remain
safe throughout their
entire JetBlue Experience.
SAFETY
Safety is our number one value. Nothing is more
important than ensuring our customers, crewmembers
and business partners remain safe throughout their
entire JetBlue Experience.
Our Integrated Safety Management System (ISMS)
is our corporate approach to managing safety risk at
21
We strive to comply with all applicable laws and
regulations regarding safety, but our approach to safety
includes more than compliance. We often go beyond
industry requirements. For example, since 2010, we have
provided in-depth, airline-specific Occupational Safety
and Health Administration (OSHA) 10-hour certification
training for our front-line crewmembers. In 2010, we
introduced the Ground Safety Continuing Analysis
and Surveillance System as a tool for continuous
improvement of our safety programs. The intent of this
program is to provide ongoing feedback, implement
corrective action, and track results to increase the
performance and effectiveness of our safety programs.
We emphasize both occupational and environmental
safety across our network, and we use physical
abilities testing for those work groups at greatest risk
of ergonomic injuries. Additionally, JetBlue has joined
with other airlines and OSHA in voluntary partnerships
focused on reducing ergonomic injuries and improving
airport ramp safety.
We believe our approach is working. We have seen
significant year-over-year decreases in both workers
compensation claims and OSHA recordable incidents.
Between January 1, 2010, and December 31, 2011, our
corporate OSHA injury rates decreased 20%, which is
consistent with the overall downward trend in our injury
rates since 2005. Our decreased injury rates are a direct
result of our crewmembers’ increased safety awareness
and training and our continuous safety program
improvements. And we won’t stop there. We aim to
provide the safest environment in the industry.
Evaluating Flight Risk
Risk Working Groups are an integral part of our safety
management system at JetBlue. The most prominent
and mature of these groups is the Flight Risk Working
Group, which assesses and analyzes potential areas
of risk and subsequently recommends preventative or
corrective actions, as needed. For example, our Flight
Risk Working Group helped incorporate safety measures
tailored to each airport in the Airport Briefing Guides,
which contain airport-specific tools for pilots. These
safety measures address unique situations that present
flight risks at individual airports based on the region
where the airport is located or the individual airport’s
circumstances.
2010-2011
We have seen significant
year-over-year decreases
in both workers
compensation claims
and OSHA recordable
incidents. Between
January 1, 2010, and
December 31, 2011, our
corporate OSHA injury
rates decreased 20%,
which is consistent with
the overall downward
trend in our injury rates
since 2005.
22
23
RECORDABLE INJURIES
PER 100 FULL-TIME EQUIVALENTS
We comply with all TSA
security requirements
and promote initiatives
that will make security as
hasslefree as possible.
We have voluntarily
implemented additional
security measures. For
instance, each Airbus
A320 aircraft now has four
cabin security cameras
with a live video feed to
the cockpit to provide
real-time situational
awareness. We have
instituted a 24-hour
security operations
desk, Blue Watch, which
assesses and manages
threats, records and
monitors suspicious
activity within the JetBlue
operating system,
and serves as a prime
communications channel
between us and our law
enforcement
and aviation security
business partners.
Sharing Promotes Safety
We continue to expand our
OSHA Recordable Injury Rate (2003-2011)
participation in voluntary
programs in partnership with
the Airlines for America (A4A) ,
formerly Air Transport Association
of America, and the FAA’s Aviation
Safety Information Analysis and
Sharing program. We actively
participate in voluntary FAA safety
20% decrease
programs, including Aviation
Safety Action Program, Flight
Operational Quality Assurance,
Wildlife Strike Prevention and Line
Operation Safety Audits. These
0
voluntary programs are the result
2003
2004
2005
2006
2007
2008
2009
2010
2011
of FAA-sponsored initiatives to
YEAR
raise safety performance through
awareness of safety trends in the
industry. Through these programs,
we share dozens of safety-related metrics with our
We comply with all TSA security requirements and
regulators and our competitors. This peer-to-peer
promote initiatives that will make security as hasslesharing of best practices results in a safer air transport
free as possible.
system. By choosing not to disclose specific performance
measures, we help encourage the continued peer-toWe have voluntarily implemented additional security
peer sharing of safety practices and metrics that result
measures. For instance, each A320 aircraft now has
in safer air travel for all.
four cabin security cameras with a live video feed to
the cockpit to provide real-time situational awareness.
SECURITY
We have instituted a 24-hour security operations desk,
The November 2001 Aviation and Transportation
Blue Watch, which assesses and manages threats,
Security Act — also known as the Aviation Security Act
records and monitors suspicious activity within the
— federalized substantially all aspects of civil aviation
JetBlue operating system, and serves as a prime
security. The Aviation Security Act required, among
communications channel between us and our law
other things, the creation of the Transportation Security
enforcement and aviation security business partners.
Administration (TSA), which oversees all aviation security
and the implementation of certain security measures
by airlines and airports, such as the requirement
that all customer bags be screened for explosives.
REDUCING OUR IMPACT
AT JETBLUE, WE BELIEVE IT IS OUR RESPONSIBILITY TO REDUCE OUR EFFECT ON
THE ENVIRONMENT. WE MANAGE OUR GREENHOUSE GAS EMISSIONS, PREVENT
SPILLS, CONTROL AIRPORT NOISE, TRACK OUR IMPACTS ON BIRDS, AND REUSE
AND RECYCLE WASTES.
REGULATORY COMPLIANCE
We are subject to various federal, state, local and
international laws relating to the protection of the
environment, including the discharge or disposal of
materials and chemicals and the regulation of aircraft
noise administered by numerous state and federal
agencies. Throughout 2010 and 2011, JetBlue did not
receive any notices of violation or non-compliance from
local, state or federal regulatory agencies.
Controlling Noise
The Airport Noise and Capacity Act of 1990 recognizes
the right of airport operators with special noise
problems to implement local noise abatement
procedures as long as those procedures do not interfere
unreasonably with the interstate and foreign commerce
of the national air transportation system. Certain
airports we serve, including San Diego and Long Beach,
Calif., have established restrictions to minimize noise,
which can include limits on the number of hourly or
daily operations and the time of such operations. These
limitations serve to protect the local noise-sensitive
communities surrounding the airport. Our scheduled
flights to these California airports and other airports
with curfew restrictions are in compliance with the
noise curfew limits, but when we experience irregular
operations, on occasion, we may violate these curfews.
2010-2011
We have agreed to a payment structure with the Long
Beach City Prosecutor for any violations. We make any
necessary payments — based on infractions from the
preceding quarter — quarterly to the Long Beach Public
Library Foundation. Our curfew violation program is
two-tiered, encompassing both unanticipated delays and
consent decree violations. Unanticipated delay violations
are usually billed individually and payable to the city.
Consent decree violations are paid quarterly to the Long
Beach Public Library Foundation. In 2010, we incurred
377 curfew violations — of which 201 were exempted for
a savings of $60,300 — and paid out a total of $585,000
in fines. We incurred 377 curfew violations — of which
201 were exempted — in 2010, and we incurred 342
violations, of which 190 were exempted, in 2011. We paid
out a total of $585,000 and $555,000 in fines in 2010 and
2011, respectively.
We are subject to laws
relating to the protection
of the environment,
including the discharge or
disposal of materials
and chemicals and the
regulation of aircraft
noise. Throughout 2010
and 2011, JetBlue did
not receive any notices
of violation or noncompliance from local,
state or federal
regulatory agencies.
Preventing Spills
Spills are a largely avoidable occurrence for airlines, and
JetBlue strives to reduce the total number of spills that
occur as a result of our operations. Local jurisdictions
are responsible for establishing reporting thresholds
for spills. Our quality team inspects the cause of each
spill and in 2008 determined that the majority of the
releases occurred because of procedures that did not
fully depressurize the wings of our E190 aircraft before
24
fueling. The high pressure resulted in the expulsion of
fuel during the refueling process. To mitigate this issue,
we revised our fueling procedures and required our
business partner to conduct a pre-test to ensure the
wing is sufficiently depressurized before fueling. As a
result of this change, we saw a significant and consistent
improvement since 2008. JetBlue had four reportable
jet fuel spills totaling approximately 65 gallons of fuel
in 2010 and three reportable jet fuel spills totaling
approximately 45 gallons of fuel in 2011. All reportable
fuel spills were properly closed out.
Social Report electronically. Through our recycling
and reuse initiatives, we have reduced waste placed
in landfills.
Recycling
Since our operations began in 2000, JetBlue’s domestic
trash generated at JFK, our largest operation, has
been sorted and recycled. Our business partner at JFK
removes about 90% of the recyclable materials from our
waste stream. The commingled trash is removed from
JFK’s Terminal 5 and the Forest Hills Support Center
and separated into categories including glass, metal,
plastic, paper, newspaper, magazines and compost. The
piles are baled for transport to paper mills and recycling
centers.
Reducing Hazardous Waste
In 2008, we focused on dramatically reducing our
waste footprint and were able to limit our hazardous
waste generation, including spent jet fuel, to less than
1,000 kilograms each month. We accomplished this by
recycling spent jet fuel and used oil, oil and fuel filters,
and lithium/NiCad batteries (from laptops, cell phones,
two-way radios and handheld cashless devices). As a
result of the successful implementation of this program
at JFK and our success with reducing spills, we are
pleased that we have continued to limit our hazardous
waste generation through 2011.
WASTE REDUCTION
Airline operations produce waste at offices, terminals
and tarmacs. At JetBlue, we reduce, recycle and reuse
wastes ranging from printer paper and food packaging
to batteries and jet fuel. For instance, we save paper
by publishing this JetBlue 2010-2011 Environmental and
25
Currently, we only recycle spent jet fuel in New York City.
We have assessed the potential of implementing similar
programs at our other stations; however, we do not
generate enough volume at those locations to make such
programs economically viable for us or our business
partners. As such, those stations dispose of minimal
volumes of hazardous wastes as needed.
Before 2008, all our spent jet fuel and used oil was
incinerated. By implementing our spent jet fuel and
used oil recycling program, we have eliminated a major
portion of our former hazardous waste stream; however,
we cannot eliminate our entire hazardous waste stream
due to FAA regulations related to jet fuel. Every 40 hours,
FAA mandates 1.5 gallons of fuel must be sumped
from the aircraft wing and inspected for fuel quality.
Regulations do not allow this sumped fuel to be collected
and used in other equipment.
Each year we are required to dispose of expired
containers of paints, adhesives and sealants. These
wastes represent the majority of the hazardous waste
we now generate. By actively managing procurement
of these materials, we minimize generation of these
wastes. In 2010 and 2011, we disposed of approximately
480 gallons and 660 gallons, respectively, of paints,
adhesives and sealants by incineration. JetBlue does
not have operations that rely on the use of materials
containing chlorofluorocarbons.
WILDLIFE MANAGEMENT
Ironically, bird strikes by aircraft, which are completely
unpredictable but highly manageable, provide a unique
opportunity for JetBlue to actively participate in
urban wildlife habitat management and improvement
projects. The airports we serve are often located on
Hazardous Waste Recycled
2010
2011
Batteries recycled (lbs.)
1,320
715
Fluorescent bulbs (lbs.)
180
290
Fuel filters recycled (lbs.)
165
165
Fuel/oil recycled (gallons)
4,308
5,551
2010-2011
large, managed tracts of land suitable for wildlife
habitat. These habitats can be critical because they
are often located in large cities that have encroached
on increasingly strained or vanishing wildlife habitats.
Airport property — particularly when adjacent to coastal
or inland waters — can be an important ecological
environment, particularly for birds and water fowl.
JetBlue was one of the
first domestic airlines
to recognize the value
of bird strike data and to
voluntarily formalize a
program to address the
issue in every city it serves
— even if the local airport
authority did not require
bird strike reporting. After
each bird strike event,
JetBlue reports the strike
to the FAA , and the FAA
maintains a record in its
Wildlife Strike Database.
According to the FAA, there were more than 121,000
wildlife strikes between 1990 and 2010. Besides
adversely affecting bird populations, bird strikes by
aircraft may result in expensive aircraft repairs and
potential flight delays. JetBlue was one of the first
domestic airlines to recognize the value of bird strike
data and to voluntarily formalize a program to address
the issue in every city it serves — even if the local airport
authority did not require bird strike reporting. After each
bird strike event, JetBlue reports the strike to the FAA,
and the FAA maintains a record in its Wildlife Strike
Database. We reported to the FAA 310 wildlife strikes
in 2010 and 315 wildlife strikes in 2011. Most of these
26
strikes resulted in no damage or only minor damage to
the aircraft. Of the 625 total strikes in 2010 and 2011,
only six strikes resulted in substantial damage that
required major repairs to the aircraft. No injuries or
human fatalities were reported as associated with any
of JetBlue’s wildlife strikes in 2010 or 2011.
After each strike, we also coordinate with the
Smithsonian Institution’s Feather Identification
Laboratory to identify the species. We provide this data to
local wildlife biologists charged with identifying resident
species and improving and safeguarding their habitats.
Additionally, through our policies regarding greenhouse
gas (GHG) emissions offsets, JetBlue makes indirect
contributions to habitat restoration projects located
away from airports. Our recent results regarding GHG
emission offsets are described later in this section and
serve as one more example of how reducing our own
impacts improves the environmental and social health
of our communities.
GREENHOUSE GAS EMISSIONS
Industry Commitments
In 2010, JetBlue joined the International Air Transport
Association (IATA). IATA reports that aviation is
responsible for 2% of global manmade carbon dioxide
(CO2) emissions, and IATA has adopted targets to
mitigate GHG emissions from the airline industry:
• An average fuel efficiency improvement of 1.5% per
year through 2020
• A cap on aviation CO2 emissions in the year 2020
(carbon-neutral growth)
• A reduction in CO2 emissions of 50% by 2050, relative
to 2005 levels
Greenhouse Gas Emissions
27
Year
Scope 1 Direct Emissions
(metric tons CO2e)
Revenue Ton Miles (RTM)
GHG Emissions/RTM
(metric tons CO2e/1,000 RTM)
2000
177,900
100,348,300
1.77
2001
532,900
329,598,800
1.62
2002
1,020,100
685,956,300
1.49
2003
1,675,500
1,156,850,500
1.45
2004
2,326,500
1,576,954,700
1.48
2005
2,926,900
2,027,586,800
1.44
2006
3,652,600
2,345,183,000
1.56
2007
4,290,300
2,588,321,400
1.66
2008
4,333,850
2,634,512,808
1.65
2009
4,351,035
2,620,365,837
1.66
2010
4,654,310
2,856,971,982
1.63
2011
5,023,365
3,095,234,716
1.62
5,500,000
5,000,000
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
2000 2001 2002 2003 2004 2005 2006
2007
2008
2009
2010 2011
2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0
INTENSITY RATIO (METRIC TONS CO2e/1,000 RTM)
METRIC TONS CO2e
Greenhouse Gas Emissions
Scope 1 Direct Emissions (metric tons CO2e)
GHG Emissions/RTM (metric tons CO2e/1,000 RTM)
IATA has identified a strategy to mitigated GHG
emissions through four key areas: improved technology,
effective operations, efficient infrastructure and
economic investment. At JetBlue, our fuel management
and fleet management strategies, discussed
further in this section, help us maximize our GHG
emissions reductions.
Greenhouse Gas Calculations
Our updated, independently calculated GHG inventory
is provided to depict JetBlue’s emissions impact. We
continue to disclose trend data for both absolute and
relative GHG emissions for all operating years since
we began service in 2000. The updated inventory
2010-2011
We believe the
combustion of jet
fuel accounts for
more than 99%
of our total GHG
emissions. We continue
to disclose trend data for
both absolute and relative
GHG emissions for all
operating years since we
began service in 2000.
presented in this report was developed in accordance
with global industry standards and protocols, such as
The Greenhouse Gas Protocol: A Corporate Accounting and
Reporting Standard from the World Resources Institute
(WRI). We have included all six GHG constituents
identified by the Kyoto Protocol and converted each to
a common unit of measure, carbon dioxide equivalents
(CO2e), to account for the varying global warming
potential of each GHG.
Based on industry data published by other airlines, we
believe CO2e emissions produced from the combustion
of jet fuel account for more than 99% of our total GHG
emissions. At the present time, we cannot quantify
28
this due to lack of complete data for ground service
equipment fuel use and electricity consumption at all
of our facilities. Although we hope to close these data
gaps in the future, we have elected to simplify our
current GHG inventory by limiting it to WRI Scope 1 direct
emissions from the combustion of jet fuel. We believe
this simplification does not have a material impact on the
data reported.
As a point-to-point, passenger airline, our work is
measured primarily by the customers and cargo
we transport. To provide some relevant context, we
normalized our absolute GHG emissions to the amount
of work completed as measured by RTMs. RTMs are
defined as the weight in tons of revenue traffic (customer
and cargo) transported multiplied by the miles flown.
Dividing our absolute emissions by RTMs generated in
the reporting period normalizes our GHG emissions to an
intensity ratio and allows us to make a fair comparison
of GHG emissions between reporting periods.
While the majority of airlines do normalize emission
data, there is no clear agreement within the industry
regarding what units should be used to normalize GHG
emissions for airlines. The data provided in this report
allows interested stakeholders to convert our disclosed
values for comparison with other reporting organizations
that have selected alternative units.
Fleet Management
Our business and environmental successes
are contingent, in large part, upon our fleet
management strategies. Our disciplined
growth begins with managing the growth,
size and age of our fleet. Managing this fleet
well ends with the maximum reduction in
our GHG emissions.
Average Aircraft Age
7.0
6.0
AGE
5.0
4.0
3.0
2.0
1.0
0.0
2000
2001
2002
2003
2004
2005
2006
YEAR
29
2007
2008
2009
2010
2011
In response to continuing uncertain
economic conditions, we continued to
carefully manage the size of our fleet in
2010 and 2011. At the end of 2011, JetBlue
operated a total of 169 aircraft, including
120 A320 aircraft and 49 E190 aircraft.
In June 2011, we announced several
significant changes to our fleet plan, which
we believe will better position JetBlue to
compete successfully over the long term.
These changes include the deferral of eight
A320 aircraft, the conversion of 30 A320
delivery positions to A321s and plans to
reduce the future size of our E190 fleet by
up to 25 aircraft. In addition, all of our A320
and A321 deliveries beginning in 2013 will
Aircraft Totals
180
A320
160
E190
FLEET TOTAL
140
Total
120
100
80
60
40
20
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
YEAR
Aircraft Fleet Inventory
Ending December 31, 2011
Aircraft
Seating per
Aircraft
Number of
Aircraft
Average
Age (years)
A320
150
120
6.9
E190
100
49
4.1
Total
250
169
6.1
2010-2011
have “sharklets,” which are wingtip
devices that we expect will improve
our fuel efficiency by roughly 3%.
We anticipate that the improved fuel
efficiency of these new aircraft will
provide significant savings against
our largest and most unpredictable
cost, jet fuel. Finally, we announced
plans to purchase 40 A320s with the
new engine option, the A320neo — a
significant investment in potentially
game-changing technology. The
A320neo — which we expect to begin
taking delivery of in 2018 — should
reduce our fuel consumption by 15%
relative to the classic A320, provide
up to 2 tons of additional payload up
to 500 nautical miles, reduce engine
noise and emissions, and provide
JetBlue with improved operating and
performance economics.
We believe that operating a newer
fleet with the latest technologies
makes our aircraft more fuel
efficient and dependable, reduces
maintenance and results in
a better experience for our
customers. Furthermore, older
aircraft tend to burn more fuel
and produce more emissions than
their newer counterparts. While
driven by financial pressures and
market conditions, our continued
commitment to maintaining a
properly sized and relatively new
fleet has allowed us to maintain a
viable business plan while actively
controlling GHG emissions.
The A320neo — which
we expect to begin
taking delivery of in
2018 — should reduce
our fuel consumption
by 15% relative to the
classic A320, provide up
to 2 tons of additional
payload up to 500 nautical
miles, reduce engine
noise and emissions,
and provide JetBlue with
improved operating and
performance economics.
30
•M
anage routes for efficiency: We schedule our
aircraft near capacity; however, we do not employ
the overbooking strategies used by some carriers. By
ensuring our aircraft are fully loaded before adding
segments to a market, we maximize the value of
our assets and minimize the intensity of our GHG
emissions.
Fuel Management
Our fuel challenge team continues its mission to reduce
and conserve fuel consumption across the JetBlue
system. Fuel remains our most significant operating
expense and largest source of GHG emissions. While
the price of jet fuel increased by about 40% in 2011
compared to 2010, we believe we are well-positioned
for a high fuel cost environment and to implement GHG
emissions reduction initiatives. With an average fleet
age of 6.1 years as of December 31, 2011, we believe we
have the most fuel efficient fleet in the U.S., and we use
efficient operating procedures to reduce GHG emissions.
To reduce and conserve fuel consumption, we use
state-of-the art engine health monitoring systems,
single-engine taxi to move aircraft on the ramp, and
actively manage the age and efficiency of our ground
service equipment. In addition we employ the following
procedures for manage our fuel consumption:
31
•S
upport NextGen: NextGen — the Next Generation
of air traffic control initiatives focusing on the
transformation of the national air transportation
system to meet current and future demands —
decreases fuel consumption and GHG emissions and
avoids gridlock in the sky and at airports through a
new dynamic satellite-based technology. An integral
component of NextGen is the Automatic Dependent
Surveillance-Broadcast (ADS-B), a surveillance
technology for tracking aircraft. We are outfitting up
to 35 of our A320 aircraft with ADS-B avionics to fly in
relatively uncongested corridors along the East Coast
as part of a $42 million FAA grant. JetBlue pilots will
be trained to use the system. The agreement allows
JetBlue to fly a new flight path to the Caribbean and
could lead to the development of two new ADS-B only
routes to the Caribbean from Boston, New York City
and Washington, D.C. These newly developed, less
congested flight routes will allow JetBlue to recognize
even more fuel savings from its already fuel-efficient
fleet.
•A
dopt single-engine taxi procedures: In 2011, we
estimated that our single-engine taxi procedures
— defined as using only one engine when driving
the aircraft between the terminal and the runway —
have saved JetBlue 5.1 million gallons of fuel. That
translates to approximately 50,000 metric tons of CO2e
and roughly $16.3 million in savings. Furthermore,
based on our own internal analysis during the same
period, the systemwide average rate for single-engine
taxi use was 62% on the A320 and 79% on the E190.
At JFK, our single-engine taxi use was 82% on the
A320 and 93% on the E190. Because we experience
our most significant delays at JFK, our single-engine
taxi success at this location has a multiplier effect
that increases the magnitude of the fuel savings and
emissions reductions attributed to the practice.
• Pursue weight-reduction initiatives: We have removed
hundreds of pounds from each aircraft by switching
to radial tires, removing seats, changing galley
provisioning procedures, modifying or replacing galley
carts and employing other, smaller initiatives.
a closed cycle that recovers wash water and passes it
through filters so that it can be recycled and does not
contaminate local watersheds.
In addition, we continue to manage a fuel hedge
portfolio as insurance to help mitigate price volatility
and protect JetBlue against severe and sudden spikes
in oil prices. We effectively hedged 51% of our total
2010 fuel consumption and 43% of our total 2011
fuel consumption. As of December 31, 2011, we had
outstanding fuel hedge contracts covering approximately
42% of our forecasted consumption for the first quarter
of 2012 and 27% for the full year 2012.
• Use efficient operating procedures: By changing
how the aircraft climbs and descends and/or its flying
speed, we can conserve surprising amounts of fuel.
•L
imit ground use of auxiliary power units (APUs): The
use of APUs on the ground is fuel intensive. We rely on
electrical ground power and pre-conditioned air units
to start aircraft engines, power aircraft systems when
parked and pressurize onboard water systems. These
practices reduce fuel consumption and reduce our
GHG emissions with more efficient electricity and air
generation units.
•P
rioritize maintenance activities: Our Technical
Operations staff actively manages our minimum
equipment work list. To accomplish this, they log all
required maintenance activities and prioritize them.
After all safety issues are addressed, any remaining
issues that may result in a significant impact to fuel
efficiency are considered priorities.
•C
lean engines sustainably: Cleaning the engines on
our aircraft improves engine efficiency, which reduces
fuel consumption and associated GHG emissions.
We use the Pratt & Whitney EcoPower® engine wash
system to minimize environmental impacts as we
clean aircraft engines. The EcoPower® system uses
2010-2011
“While I manage to keep
my carbon emissions
pretty low here in the city
by taking the subway and
biking to work, I always
felt bad about having to
fly across the country
from NYC every holiday
season to see my family
in California because of
the environmental impact
of the flight — now I’m
happy to be able to offset
it with putting money
back into the repair work
we need to do for our
environment! Thanks for
making it so easy.”
— JetBlue customer
supporting
Carbonfund.org
in October 2011
Emission Offsets
At JetBlue, we realize it is our social responsibility
to reduce our environmental impact as best we can.
Through our Jetting to Green initiatives, we’re working to
protect and preserve the environment and to do our part
to be good environmental stewards. While JetBlue’s fleet
32
is among the most fuel-efficient in the industry, air travel still makes an impact on our environment. Carbon offsets
allow our customers to balance out the GHG emissions from a flight by supporting projects that reduce GHG
emissions elsewhere.
We partner with nonprofit Carbonfund.org to offer our customers the option to offset the GHG emissions of their
travels. Customers’ donations will support a portfolio of environmental projects in select states currently served by
JetBlue. In addition to offering customers the opportunity to support carbon offset projects, JetBlue donated one
tree to Carbonfund.org for each of its 12,000 crewmembers to further offset carbon emissions. JetBlue also offsets
GHG emissions generated by the airline’s crewmembers traveling for corporate business. Donations further the
development of wind power in Texas, assist with the capture of methane gas from landfills in upstate New York and
continue reforestation efforts on 1,100 acres in Louisiana, which will restore native trees and protect local wildlife.
A NEW GREEN HOME FOR JETBLUE
In 2010 we announced our move to our future Corporate
Support Center home in Long Island City, N.Y. The new
building located at the foot of the 59th Street Bridge in
Queens was originally constructed in 1910 as a factory.
It was selected, in part, because the landlord, MetLife,
had certified the building as LEED Silver in Operations
and Maintenance and operates it according to these
strict standards. Throughout 2011 we renovated the
interior space that began housing our roughly
1,000 crewmembers in March 2012. The office creates a
healthier workspace for our crewmembers and reduced
environmental impact for our community. We will
provide more details regarding our new Corporate
Support Center in the JetBlue 2012 Environmental
and Social Report.
33
VOLUNTEERING OUR SERVICES
“TWO OF OUR CORE VALUES, CARING AND PASSION, ARE EVIDENT IN OUR
VOLUNTEERISM AND PHILANTHROPIC PARTNERSHIPS. WHETHER IT IS FOR ONE OF
OUR CORPORATE CAUSES OR AN INDIVIDUAL CREWMEMBER’S PERSONAL PASSION
TO VOLUNTEER, WE GIVE IT OUR ALL. AS A SERVICE ORGANIZATION, WE HOLD
TRUEBLUE TO OUR VALUES AND THE BETTERMENT OF OUR COMMUNITY.”
– ICEMA GIBBS, DIRECTOR OF CORPORATE SOCIAL RESPONSIBILITY
Successful businesses depend on healthy communities and, just as critically, successful communities rely on healthy
businesses. As such, we continually seek opportunities to leverage our services to enhance the quality of life in the
communities we serve. We support nonprofit organizations throughout our network. In 2010 and 2011, we donated
more than 10,000 JetBlue tickets to support nonprofit organizations across the country. In addition to providing inkind and financial support, we serve JetBlue communities through volunteer projects and crewmember engagement
programs throughout the year.
Our philanthropic efforts are
organized and administered
by our Corporate Social
Responsibility (CSR)
department, which focuses
on corporate citizenship,
corporate giving, philanthropy,
crewmember volunteerism,
and corporate social and
cause-related marketing.
Our CSR department closely
coordinates with Governmental
Affairs, Marketing, Corporate
Communications and other
work groups to ensure
JetBlue’s efforts are ethical,
relevant to our business, and
consider the interests of the
2010-2011
34
communities we serve by taking responsibility for the
impact of our activities on customers, crewmembers,
shareholders and the environment in all aspects of
our operation.
We focus on creating
programs and opportunities
to connect with our
communities within
the areas of youth and
education, community and
the environment. We enjoy
cooperation from several
national partners, including
the American Cancer
Society, Carbonfund.org,
Do Something, First Book,
KaBOOM!, PBS
and Soaringwords.
35
We focus on creating programs and opportunities to
connect with our communities within the areas of
youth and education, community and the environment.
We enjoy cooperation from several national
partners, including the American Cancer Society,
Carbonfund.org, Do Something, First Book, KaBOOM!,
PBS and Soaringwords. One of our challenges is to
engage in volunteer efforts that excite our crewmembers
and align with their passions across the network, while
providing localized impact. In addition to our networkwide campaigns, we work alongside the regional
marketing managers to administer our local giving and
ensure we are active members of the community in all 70
cities we serve.
In an effort to further align our corporate giving
with our crewmembers’ passions, we have surveyed
crewmembers to determine what organizations they
would like to see us support and have developed
crewmember engagement programs around those
results. As part of this effort we launched a new
platform, Community Connection, in the spring of 2011.
The program allows crewmembers to earn JetBlue
tickets for the nonprofit organization of their choice for
every 25 hours of community service. In 2011, more
than 1,300 crewmembers registered and logged more
than 18,000 hours volunteering for organizations to
which they personally feel a connection. Crewmembers
logging more than 25 volunteer hours earned a roundtrip
JetBlue ticket to give to the charity of their choice, and
crewmembers logging more than 50 hours earned
two roundtrip JetBlue tickets to give to a charity of
their choice. Through this effort we donated more
than $270,000 worth of roundtrip flights to a variety
of deserving charities. In addition, we awarded $6,000
worth of grants to the top five crewmembers who
volunteered the most time, including a $2,500 grant to
the crewmember who logged the most hours in 2011,
topping in at 1,700 hours!
At the annual Community Connection dinner, we also
gave away a team award to the BlueCity that was most
involved in its community. Boston crewmembers took
home the prize for their Wings for Autism events. We
awarded our Boston crewmembers with a $10,000 grant,
which they donated to the Jimmy Fund.
LIGHT UP A LIFE
Each year, between November and January, we support
Soaringwords, a nonprofit organization whose mission
is to inspire ill children to never give up. We give each
work group across our network quilts to decorate as a
team, individually, with their family, during delays — any
way the team chooses. It’s a great volunteer opportunity
that takes place right in the workplace. On Martin Luther
King Day of Service in January, we take the quilts to
local hospitals. During the 2010-2011 program, our
crewmembers volunteered 2,425 hours of service to
decorate and deliver more than 2,000 quilts across
hospitals in each of the 70 cities we serve, helping
hundreds of ill children feel special.
FIGHT CANCER
Since 2003, we have been a supporter of the American
Cancer Society and its fight against breast cancer
through the American Cancer Society Making Strides
Against Breast Cancer walk. Between 2003 and 2011,
we have provided more than $1.5 million in JetBlue
tickets and crewmember fundraising to support the
American Cancer Society. In addition, in 2011 we
partnered with American Express Co. to launch a
program to send breast cancer packing. For every
purchase made using an American Express in early
October 2011, we donated $1 to the American Cancer
Society; this program alone resulted in a $50,000
donation the American Cancer Society.
ENCOURAGE LITERACY
In 2006, JetBlue launched its partnership with
First Book, a nonprofit organization that provides new
books to children in need, to address a key factor
2010-2011
affecting literacy — access to books. Together, JetBlue
and First Book have distributed more than 200,000 new
books to children from low-income families.
In summer 2011, JetBlue and PBS Kids launched
Soar with Reading — Let Your Imagination Take
Flight. We created the Soar with Reading program to
inspire families to explore educational activities and
prevent reading regress during the summer months.
JetBlue printed 250,000 literacy-based activity books
(available in English and Spanish) and launched
www.soarwithreading.com, an online literacy resource
that provides a reading meter to log each child’s reading
time and offers suggested reading lists and a variety of
other educational activities. With the help from PBS Kids
animated host, Hooper, the campaign also encourages
children to learn about the world around them through
imaginative travel. For every reader who registered on
www.soarwithreading.com in summer 2011, JetBlue
made a book donation to a child in need through First
Book, totaling 10,000 books for children in need.
In 2011, more than
1,300 crewmembers
logged more than
18,000 hours volunteering
for organizations to which
they personally feel a
connection. Crewmembers
logging more than
25 volunteer hours earned
a roundtrip JetBlue ticket
to give to the charity
of their choice, and
crewmembers logging
more than 50 hours
earned two roundtrip
JetBlue tickets to give to
a charity of their choice.
36
Additionally, website visitors were invited to nominate their local libraries to receive $10,000 worth of Random House
children’s books. More than 115,000 entries were received, representing all 50 states, and the final grand prize was
awarded to the Dundee Township Public Library in East Dundee, Ill. The second place library received $2,500 in books
and five additional libraries received $500 in books.
Since the Soar with Reading program was such an enormous success, we are looking forward to continuing the
program in 2012, and we are excited to continue working toward ensuring all children have access to
age-appropriate books.
DO ONE THING THAT’S GREEN
JetBlue launched this national, annual campaign in 2008 to encourage our crewmembers and customers to make one
change in their daily routine through an online pledge to Do One Thing That’s Green in honor of Earth Day. Since 2009,
we have had 128,851 pledges, which would potentially translate to a reduction of more than 29,000 metric tons of CO2e.
For the fourth consecutive year, JetBlue completed a volunteer event with the New York Restoration Project to support
Mayor Bloomberg’s initiative, MillionTreesNYC. The event took place at MacDonald Park on Queens Boulevard in
April 2011. With 800 volunteers, not only was this the largest volunteer event the New York Restoration Project has
ever produced, it was the largest volunteer event in
the Queens Park Department’s history and the largest
corporate-sponsored volunteer event in New York City
history. To date, we have planted more than 750 trees
in New York City, and more than 1,100 crewmembers,
friends and family volunteered more than 5,350 hours for
this cause.
As our own Do One Thing That’s Green pledge, in 2010
and 2011 JetBlue has continued the partnership with
Carbonfund.org to offset carbon emissions. Since 2008,
we have reduced over 176,000,000 pounds of CO2e, which
is the equivalent to taking more than 15,000 passenger
vehicles off the road for an entire year. In addition,
JetBlue has made a commitment to offset crewmember
business travel through Carbonfund.org, and we
encourage our customers to offset their travel as part
of our greenhouse gas management strategies that are
described in the Reducing Our Impact section of
this report.
37
Our Do One Thing That’s Green program is intended to
influence crewmembers and customers nationally. Each
station works with HandsOn Network or Keep America
Beautiful to find a volunteer opportunity and engage
work groups to get out and volunteer. We have selected
a diverse portfolio of projects in JetBlue cities. These
include landscaping and flower planting at Andrus
Children’s Center in Yonkers, N.Y.; Restoring Angeles
National Forest in Los Angeles County, Calif.; Save the
Bay Project in Boston; and Suarez Canal clean-up in
San Juan Bay, Puerto Rico. And thanks to the help of
HandsOn Network and Keep America Beautiful, 35 other
volunteer projects took place across JetBlue’s domestic
and international network throughout 2010.
INSPIRE PLAY
KaBOOM!, a national nonprofit organization that
envisions a great place to play within walking distance of
every child in America, and JetBlue have come together
to empower communities to build playgrounds by leading
builds, sharing know-how and tools, and rallying local
leaders to take action on behalf of play. Since 2005, more
than 2,830 JetBlue crewmembers have moved 16 trailers
of mulch to build 11 playgrounds and serve more than
5,680 children in Orlando, Fla..; Newark, N.J.; Woburn,
Mass.; Long Beach, Calif.; Long Island City, N.Y.; Salt
Lake City; Forest Hills, N.Y.; Lauder Hill, Fla.; Roxbury,
Mass.; Revere, Mass.; and Kissimmee, Fla. In 2012,
2010-2011
we will complete five more playgrounds in
JetBlue communities.
LET THE MUSIC PLAY
The VH1 Save The Music Foundation is a nonprofit
organization that provides grants of high-quality musical
instruments to public elementary and middle schools.
Since 1997, the foundation has provided $48 million
worth of new musical instruments to 1,800 public
schools in more than 100 communities around the
country, impacting the lives of more than 1.8 million
students. The long-standing partnership between
JetBlue and VH1 Save The Music Foundation began in
2005, when JetBlue became the foundation’s official
airline sponsor.
As a platinum sponsor, JetBlue provides vouchers to
help alleviate travel costs associated with meeting
financial goals and effectively implementing the
foundation’s mission. In 2009, we wanted to contribute
more, so we launched our Let The Music Play campaign
in celebration of our newly launched flight service to Los
Angeles International Airport. Since the launch of the
campaign, JetBlue has raised and donated more than of
$164,000 for the cause. This campaign is now an annual
partnership with plans to grow each year in support
of building the next generation of leaders through a
comprehensive education that includes music.
KaBOOM!, a national
nonprofit organization that
envisions a great place
to play within walking
distance of every child in
America, and JetBlue have
come together to empower
communities to build
playgrounds by leading
builds, sharing know-how
and tools, and rallying
local leaders to take action
on behalf of play. Since
2005, more than 2,830
JetBlue crewmembers
have moved 16 trailers
of mulch to build 11
playgrounds and serve
more than 5,680 children
in JetBlue cities across
the U.S.
38
SWING FOR GOOD, BID FOR GOOD
Over the past three years we’ve raised more than
$800,000 for our partners DoSomething.org, one of the
largest organizations in the U.S. that helps young people
support causes they care about, and KaBOOM! through
our annual Swing for Good Golf Classic tournament.
“JetBlue prides itself on
being a service company
that goes beyond the airport
and has lasting impact on
the local community. We’re
proud to bring together
our business partners,
vendors, crewmembers and
other charitable partners
for two very admirable
causes, KaBOOM! and
DoSomething.org.”
— Dave Barger
As part of our Swing for Good fundraising efforts, in
September 2011, we announced the second annual
Bid for Good charitable online auction to also benefit
KaBOOM! and DoSomething.org. The auction items
included: a trip to Boston with a pre-game tour of
Fenway Park and the opportunity to throw out the
first pitch at a Red Sox game, the opportunity to be a
New York Jet’s tee kid at a game against the Miami
Dolphins and two tickets to 47th Academy of Country
Music Awards in Las Vegas with access to the All-Star
Jam after party. Together, we were able to raise nearly
$40,000 for these two organizations.
In May 2011, we asked celebrities to Let Go of Baggage
for a Good Cause. More than 50 famous musicians,
actors and athletes donated personal items with 100% of
the proceeds benefiting DoSomething.org. In addition to
the $44,000 raised through the auction, fans could also
visit our Facebook page to enter for a chance to win a
piece of the celebrity baggage. For every entry received,
we donated $1 to DoSomething.org.
Through our Swing for Good Golf Classic tournament
and our Bid for Good and Let Go of Baggage for a
Good Cause auctions, we raised a record $350,000 for
DoSomething.org and KaBOOM! in 2011.
39
TIMES SQUARE VALENTINE FOOD DRIVE
On February 18, 2011, we teamed with DoSomething.org and nonprofit Move for Hunger to host a canned food drive in
Times Square to support families in need in New York City. In exchange for a minimum donation of two cans or food,
we offered a unique promotional code for $15 off each way on the purchase of a roundtrip flight from New York to
any destination in the our network. During the food drive, crewmembers held up the Times Square Valentine, a heart
displayed in Times Square as part of an annual competition for architects.
2010-2011
40
SPOTLIGHT: BOSTON
“AS WE CONTINUE TO GROW OUR OPERATIONS IN BOSTON, WE WILL STEADILY
INCREASE OUR COMMUNITY EFFORTS HERE.” – IAN DEASON, DIRECTOR OF
AIRPORT OPERATIONS BOSTON
Boston is New England’s largest transportation center and an important travel market for JetBlue in the
Northeast region. We initiated service from Boston in 2004. By 2010, JetBlue was the largest carrier in Boston,
serving the most departures, the most nonstops and the most destinations from Logan. As we continue to
grow at Logan, we continue to increase our involvement with the local community in Boston. We are dedicated
to developing impactful charitable partnerships, supporting and aligning ourselves with the greater Boston
community and creating significant volunteer experiences for our crewmembers in Boston.
41
THE MOST NONSTOPS OUT OF BOSTON
Throughout 2010 and 2011, we continued to grow
in Boston. In November 2010, we opened six new
destinations from Boston, including daily service
to Washington D.C.’s Reagan National Airport, a
key destination for business travelers. In 2011, we
opened five new destinations, and we announced
plans to begin service between Dallas-Fort Worth
and Boston in May 2012. By the end of 2011, we
offered flights to more than 40 destinations from
Boston, accounting for more than 20% of all
domestic flights at Logan. On April 14, 2011, we
achieved the milestone of 100 departures per day
from Boston. In 2012 and beyond, we aim to further
increase our presence with New England travelers,
particularly business travelers.
2010-2011
Our operations at Logan are based at Terminal C.
We began 2010 with 12 gates and two separate
concourses with separate security checkpoints. To
enhance convenience for our customers and efficiency
for our crewmembers, we worked closely with Massport,
the Massachusetts Port Authority, to connect our two
concourses within Terminal C. Completed in August
2011, the upgrades to Terminal C centralize the security
checkpoint and provide our customers the convenience
of contiguous JetBlue gates. We plan to make additional
investments in our Boston infrastructure, including
systems, ramp and maintenance facilities and other
airport space, to allow us to further expand our presence
at Logan and reach our goal of 150 departures per day.
“The Red Sox are proud
to have a strong inner
city youth baseball and
softball program, with
nearly 900 youngsters
involved every summer
and to have JetBlue’s
support for this once-ina-lifetime tournament
opportunity for
our young All Stars.”
— Tom Werner,
Red Sox chairman
42
STRONG TIES WITH THE BOSTON COMMUNITY
We believe that to continue to grow as a business in
Boston, we need a strong local economy and healthy
neighborhoods that can use our services. But business
concerns aren’t the only reasons we promote positive
social and environmental change in Boston. More than
2,000 of our crewmembers live and raise their families
in the greater Boston area. We care very much about the
local community because so many of us at JetBlue call
Boston home.
We have developed strong ties with the city of Boston.
We support the Boston Centers for Youth and Families,
community centers that offer affordable programs
including preschool, school-aged and adult education;
literacy; youth employment; violence prevention;
and senior activities, recreation and enrichment. In
December 2011, JetBlue sponsored the city of
Boston’s 70th annual tree-lighting ceremony in
Boston Commons. Open to the community, the
annual ceremony was hosted by Boston Mayor
Thomas M. Merino and offered live music
and festivities.
JetBlue supports the nonprofit Save the Harbor/Save
the Bay, which work to restore and protect Boston
Harbor and Massachusetts Bay and reconnect
local residents with the Boston waterfront, local
beaches, the harbor and the Harbor Islands. We
support the Better Beaches program that provides
grants to support free public events at local beaches
during the summer. The Better Beaches program
funds beachfront concert series, sand sculpting
competitions, environmental education programs,
family fun nights, several beach festivals and other
community events. In April 2011, we sponsored the
first annual Cupid Splash Fundraiser, a cold-water
plunge to raise funds for the Better Beaches
grant program.
Through our long-time partnership with KaBOOM!,
a national nonprofit organization aimed at creating
great places to play for every child in America,
JetBlue sponsored construction of new playgrounds
in the Boston-area cities of Roxbury, Mass., and
Revere, Mass., in 2010 and 2011. In addition to
supporting the new playgrounds through JetBlue
corporate investments, our Boston-based JetBlue
crewmembers volunteered to help build each
playground in just one day’s time. Following
completion of the new Boston-area playgrounds,
KaBOOM! and JetBlue teamed to construct a total of
11 new playgrounds across the United States.
43
BIG FANS OF BEANTOWN
At JetBlue, we are proud to support Boston
athletes. We are the official airline for the Boston
Red Sox, and we support the team’s Red Sox
Foundation, a nonprofit organization focused on
building community partnerships to improve the
lives of children and families across New England.
Each summer, the Red Sox Foundation’s Reviving
Baseball in Inner Cities (RBI) program serves nearly
900 children and teens playing on inner city baseball
teams. In 2011, JetBlue flew 45 Boston teen players
and their coaches to New York City to compete in
Major League Baseball’s RBI program’s Northeast
Regional All-Star Baseball and Softball Tournament.
JetBlue also supports the Red Sox’s Lindos
Suenos program, which strives to bring people of
different backgrounds together through baseball
and community service. In 2010, we donated funds
and roundtrip JetBlue tickets to send U.S. teens
to the Dominican Republic to perform community
service and play baseball with local teen players.
2010-2011
In 2011, construction of JetBlue Park, the new Red Sox
spring training home in Fort Meyers, Fla., began, and we
announced completion of JetBlue Park in 2012.
We are also the official airline of the Boston Marathon.
We offer a special discount on our airfares for registered
marathon runners and participate in community
outreach efforts through our partnership with the Boston
Athletic Association. In 2010, we announced that we
are the official airline of TD Garden, Boston’s venue for
National Basketball Association (NBA) and National
Hockey League (NHL) games, music concerts and other
entertainment. When the Bruins, Boston’s NHL team,
won the Stanley Cup in 2011, JetBlue sponsored the
celebratory parade.
We are focused on giving back to the communities we
serve and supporting Boston long-time institutions like
the Boston Red Sox and the Boston Marathon. We plan to
expand our presence in Boston and to further strengthen
our ties to this community in the coming years.
More than 2,000 of our
crewmembers
live and raise their
families in the greater
Boston area, and we are
proud to support
Boston athletes. We
are the official airline
for the Boston Red Sox,
the Boston Marathon
and TD Garden.
44
AWARDS
JetBlue is a safe, dependable, value-added airline
delivering un-matched customer service and value to all
customers. Similarly, we believe customer awareness
of our brand has contributed to the success of our
promotional and marketing efforts and enables us to
promote ourselves as a preferred marketing partner
with companies across several industries. Our success
is evidenced, in part, by these recognitions:
• In 2011, J.D. Power and Associates awarded JetBlue
was one of the highest honors in airline customer
satisfaction among low-cost carriers. This is our
seventh consecutive customer satisfaction award from
J.D. Power and Associates. We also ranked highest
in satisfaction among low-cost airlines every year
from 2006 to 2010. Overall, customer satisfaction is
measured based on performance in seven measures
(listed in order of importance): cost and fees; in-flight
services; flight crew; aircraft; boarding, deplaning and
baggage; check-in; and reservation.
• We received honors in six categories for the 2010 Zagat
Airline Survey, including: “Most Eco-Friendly Airline,”
“Best Value,” “Best Luggage Policy,” “Best Consumer
On-Time Estimates,” “Top Rated Large Domestic
Airline” for economy and “Best Inflight Entertainment”
for domestic flights.
• The JetBlue Experience earned us “Best Coach-Class
Experience” (2010), “Most Customer-Friendly Airline”
(2010) and “Most Pet-Friendly Airline for Carry-On
Pets” (2010) from the SmarterTravel Editors’
Choice Awards.
45
2011 AWARDS
Best Airline – Awarded by Logo TV’s NewNowNext Travel Awards
Best Airline Website Booking Experience – Awarded by U.S. Air Travelers’ Choice Awards
Best U.S. Budget Airline – Awarded by About.com
Excellent Web Service – Awarded by Compuware Gomez Web and Mobile Performance Awards
Best Value Airline (Domestic), Most Customer-Friendly Airline and Best Coach-Class Experience –
Awarded by Travel 2011 Editor’s Choice Awards
Top Low-Cost Airline for Customer Satisfaction – Awarded by J.D. Power and Associates
2011 MILESTONES
July 16: JetBlue flies between Burbank and Long Beach, Calif., in #OverThe405 promotion
July 6: JetBlue announces second destination in Costa Rica, Liberia
June 30: JetBlue and Qatar Airways announce partnership
June 16: JetBlue adds service from San Juan, Puerto Rico to St. Thomas and St. Croix
June 15: JetBlue introduces Even More Space and Even More Speed
May 26: JetBlue begins nonstop summer service between New York City and Martha’s Vineyard
May 23: JetBlue flies seasonal nonstop service to Anchorage, Ala., from Long Beach, Calif.
May 18: JetBlue announces fifth Dominican destination, La Romana
May 2:
JetBlue and Icelandair partner to provide new travel options from North America to destinations throughout
Europe
April 14: JetBlue reaches milestone at Boston Logan of 100 daily flights
March 29: JetBlue is the official airline of the Boston Red Sox for eight more seasons
March 22: JetBlue and Virgin Atlantic team up on transatlantic travel
March 8: JetBlue and LAN partner to offer new interline connections between the Americas
2010-2011
46
2010 AWARDS
Top Low-Cost Airline for Customer Satisfaction – Awarded by J.D. Power
and Associates
Top Technology Innovators Across America – Awarded by Information Week
Top Rated Large Domestic Airline for Economy and Best Inflight Entertainment for Domestic
Flights – Awarded by Zagat Airline Survey
Best Cabin Ambiance – Awarded by Passenger Choice Awards, Airline Passenger
Experience Association
#1 Airline Brand – Awarded by Brand Keys Customer Loyalty Engagement Index
CIO 100 Award Honoree – Awarded by CIO Magazine
Best Concessions Program Design for John F. Kennedy International Airport
Terminal 5 (T5/JFK) – Awarded by Airport Revenue News’ Best Airport and Concessionaires
Awards
Most Unique Services (T5/JFK) – Awarded by Airport Revenue News’ Best Airport
and Concessionaires Awards
Best Overall Concessions Program (T5/JFK) – Awarded by Airport Revenue News’ Best
Airport and Concessionaires Awards
Best Concessions Management Team (T5/JFK) – Awarded by Airport Revenue News’ Best
Airport and Concessionaires Awards
Best Coach-Class Experience – Awarded by SmarterTravel Editor’s Choice Awards
Most Customer-Friendly Airline – Awarded by SmarterTravel Editor’s
Choice Awards
Most Pet-Friendly Airline for Carry-On Pets – Awarded by SmarterTravel Editor’s
Choice Awards
Perfect 100 Corporate Equality Index Rating – Scored by Human Rights Campaign’s
Corporate Equality Index
47
2010 MILESTONES
November 17: JetBlue announces new service to Connecticut’s Bradley International Airport
November 15: JetBlue and Emirates launch interline agreement
November 1: JetBlue’s rewards program, TrueBlue, celebrates its first birthday
November 1: JetBlue now flying out of Reagan National Airport in Washington, D.C.
October 18:
JetBlue becomes official airline of Boston’s TD Garden and presenting sponsor of the
entrance experience
October 15: JetBlue unveils specially painted A320 aircraft paying homage to the New York Jets
October 14: JetBlue launches new advertising and marketing campaign: You Above All
September 22: JetBlue and ViaSat announce 21st century in-flight broadband connectivity
September 20:
September 8:
New York’s hometown airline, JetBlue, and Empire State Development reveal co-branded JetBlue/
“I Love New York” logo
JetBlue announces new service to Providenciales, Turks and Caicos Islands from
New York and Boston
August 17: JetBlue’s All You Can Pass returns for a second year
July 22: JetBlue and El Al Israel Airlines announce interline agreement to connect customers between U.S.
and Israel
June 8: Sixth consecutive J.D. Power and Associates Award
June 8: JetBlue welcomed as official member of IATA
May 7:
JetBlue and South African Airways proudly announce new interline agreement
March 31: American Airlines and JetBlue sign agreement to collaborate at key East Coast gateways
March 2: JetBlue opens new headquarters location in Long Island City, N.Y.
February 11: JetBlue celebrates 10th anniversary
2010-2011
48
ABOUT OUR REPORTING
WE PREPARED OUR JETBLUE 2010-2011 ENVIRONMENTAL AND SOCIAL REPORT
USING THE PRINCIPLES DEFINED IN THE INTERNATIONALLY RECOGNIZED GRI G3.1
GUIDELINES. THIS REPORT IS COMPLIANT WITH GRI APPLICATION LEVEL C.
This report builds on the prior corporate Environmental and Social Reports we issued for 2006 through 2009. These
reports discuss our greenhouse gas emissions reduction efforts, our environmental awareness programs — which
we call Jetting to Green — and our community involvement. Our community involvement includes being a business
partner in endeavors to, for example, build playgrounds, plant trees and donate books to the communities where
we live and work. As part of our efforts to reduce, reuse and recycle wastes, we publish our sustainability reports
electronically to reduce paper usage. More information on these efforts and our prior corporate sustainability reports
are available at www.jetblue.com/green.
This report covers JetBlue’s operations between January 1, 2010, and December 31, 2011. In this report, we have
restated data previously presented in two tables in our JetBlue 2008-2009 Environmental and Social Report. In the
chart titled “Aircraft Totals,” we restate the historic number of aircraft for certain years. In the chart titled “Total
Crewmembers,” we restate the total number of crewmembers for years prior to 2010. These changes have not
materially affected the trends in the data or our interpretation of our performance. The report did not require
significant changes from previous reporting periods in scope, boundary or measurement methods. Financial
restatements, as needed, are published in our
U.S. Securities and Exchange Commission
filings. Consolidated data is provided for JetBlue
and its wholly owned subsidiary LiveTV®, LLC
and excludes third-party business partners
unless specifically stated otherwise. The
environmental data in this report refers solely to
JetBlue’s aircraft operations. Data for our other
subsidiaries is not included.
We prepared this report using the principles
defined in the GRI’s Sustainability Reporting
Guidelines version 3.1 (G3.1). Looking back,
our 2006 report focused primarily on providing
an overview of our general environmental and
49
social performance. In 2007, we increased the scope to provide greater detail and historical data regarding these same
topics. Starting in 2008, we continued to demonstrate our dedication and transparency by expanding the boundaries
of the report to encompass economic data. We now report to the triple bottom line — our economic, social and
environmental performance. In our most recent prior report, we included two years in the reporting period, 2008 and
2009. In this report, we have again included two years in the reporting period, 2010 and 2011. This report is compliant
with GRI application level C. In future years, we anticipate producing a GRI level C or higher report annually.
This report covers
JetBlue’s economic,
social and environmental
performance between
January 1, 2010, and
December 31, 2011.
We prepared this
report using the
principles defined
in the GRI’s Sustainability
Reporting Guidelines G3.1.
Our stakeholders include shareholders, crewmembers, customers, business partners, regulators, communities and
even our airline peers, with whom we interact as we provide the JetBlue Experience. In recognition of this broad array
of stakeholders, we listen to their concerns and comments at every available opportunity. We believe this feedback
is critical to our future and successful reporting. We welcome feedback and encourage comments that will help us
produce future reports that serve all of our stakeholders’ needs. Questions regarding anything included in this report
may be directed to:
Ms. Icema Gibbs
Director, Corporate Social Responsibility
[email protected]
2010-2011
50
GLOBAL REPORTING INITIATIVE INDEX
PROFILE DISCLOSURES
51
PAGE (S)
1.
STRATEGY AND ANALYSIS
1.1
Statement from the most senior decision-maker of the organization
2.
ORGANIZATION
2.1
Name of the organization
2.2
Primary brands, products and/or services
2.3
Operational structure of the organization, including main divisions, operating companies, subsidiaries and joint ventures
2.4
Location of organization’s headquarters
2.5
Number of countries where the organization operates and names of countries with either major operations
or that are specifically relevant to the sustainability issues covered in the report
2.6
Nature of ownership and legal form
2.7
Markets served (including geographic breakdown, sectors served and types of customers/beneficiaries)
7, 10, 13-15
2.8
Scale of the reporting organization
5-10, 13-15
2.9
Significant changes during the reporting period regarding size, structure or ownership
2.10
Awards received in the reporting period
3.
REPORT PARAMETERS
3.1
Reporting period (e.g., fiscal/calendar year) for information provided
3.2
Date of most recent previous report (if any)
49-50
3.3
Reporting cycle (annual, biennial, etc.)
49-50
3.4
Contact point for questions regarding the report or its contents
3.5
Process for defining report content
3.6
Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers)
3.7
State any specific limitations on the scope or boundary of the report
3.8
Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations and other entities that can significantly
affect comparability from period to period and/or between organizations
49
3.10
Explanation of the effect of any re-statements of information provided in earlier reports and the reasons for such
re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods)
47
3.11
Significant changes from previous reporting periods in the scope, boundary or measurement methods applied in the report
49
3.12
Table identifying the location of the standard disclosures in the report
Letter from the CEO
Cover
5-6, 14-15
6-7
33
7, 10, 13-15
18
14-15, 18
45-48
49
50
49-50
7, 13-14
49-50
51-52
4.
GOVERNANCE, COMMITMENTS AND ENGAGEMENT
PAGE (S)
4.1
Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such
as setting strategy or organizational oversight
4.2
Indicate whether the chair of the highest governance body is also an executive officer
17
4.3
For organizations that have a unitary board structure, state the number of members of the highest governance body that are
independent and/or non-executive members
17
4.4
Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body
16
4.5
Linkage between compensation for members of the highest governance body, senior managers and executives, and the
organizations’s performance
17
4.14
List of stakeholder groups engaged by the organization
50
4.15
Basis for identification and selection of stakeholders with whom to engage
50
15-17
PERFORMANCE INDICATORS: ECONOMIC
EC1
Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other
community investments, retained earnings, and payments to capital providers and governments
EC3
Coverage of the organization’s defined benefit plan obligations
5-6, 11-12
8-12
ENVIRONMENTAL
EN5
Energy saved due to conservation and efficiency improvements
29-32 (partial)
EN6
Initiatives to provide energy-efficient or renewable energy-based products and services and reductions in energy requirements as a
result of these initiatives
29-32 (partial)
EN16
Total direct and indirect greenhouse gas emissions by weight
28-29
EN18
Initiatives to reduce greenhouse gas emissions and reductions achieved
29-33
EN23
Total number and volume of significant spills
24-25
EN24
Weight of transported, imported, exported or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III
and VIII and percentage of transported waste shipped internationally
25-26
EN28
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations
24
SOCIAL: LABOR PRACTICES AND DECENT WORK
LA1
Total workforce by employment type, employment contract and region
LA2
Total number and rate of employee turnover by age group, gender and region
LA3
Benefits provided to full-time employees that are not provided to temporary or part-time employees by major operations
LA4
Percentage of employees covered by collective bargaining agreements
LA7
Rates of injury, occupational diseases, lost days and absenteeism and number of work-related fatalities by region
8-10
10
11-12
8, 11
23 (partial)
SOCIAL: SOCIETY
SO5
Public policy positions and participation in public policy development and lobbying
2010-2011
23
52

IMPROVING OUR COMMUNITIES

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